Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-C - Hybrid financial instrument mismatch  

Operative provisions

SECTION 832-200   When a payment gives rise to a hybrid financial instrument mismatch  

832-200(1)  
A payment gives rise to a hybrid financial instrument mismatch if:


(a) the payment gives rise to a *hybrid mismatch under section 832-215 or 832-230 ; and


(b) subsection (3) or (6) applies.

Note:

As a result of ordering rules in later Subdivisions, a payment that gives rise to a hybrid financial instrument mismatch does not also give rise to a hybrid mismatch under a later Subdivision of this Division.

832-200(2)  
The deduction component of the *hybrid financial instrument mismatch is the *deduction component of the *deduction/non-inclusion mismatch.

832-200(3)  
This subsection applies if the following entities are related for the purposes of subsection (4):


(a) the entity that made the payment;


(b) each entity that is a *liable entity in respect of the income or profits of the recipient of the payment.

Note:

For the definition of liable entity, see section 832-325 .

Related persons

832-200(4)  
Two entities are related for the purposes of this subsection if any of the following apply:


(a) the entities are in the same *Division 832 control group;


(b) one of the entities holds a *total participation interest of 25% or more in the other entity;


(c) a third entity holds a total participation interest of 25% or more in each of the entities.

832-200(5)  
For the purposes of subsection (4), treat the *direct participation interest of an entity (the holding entity ) in another entity (the test entity ) as being the sum of the direct participation interests held by the holding entity and its *associates in the test entity. Structured arrangement

832-200(6)  
This subsection applies if the payment is made under a *structured arrangement.


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